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Social Security for us 20 and 30 somethings

My grandfather jokes that he makes more now off of Social Security than he did when he was working. He will turn 90 this year, and I am turning 30. I remember reading about the need for Social Security reform when I was in high school and even wrote an article for my schoolâs papers. The bottom line: many experts were saying back then and still are that Social Security will not be available for us when we are ready to retire, or will be greatly reduced.
What does that mean for me? Well, I started a 401K plan at my first job out of college as soon as I became eligible. Now, seven years later, I have approximately $29K saved in my IRAs. The problem for others in my age group? They are delaying starting a personal savings plan, which can be a costly mistake for their future.
I donât understand everything there is to know about investments, but I do know this: You need to start saving early and the longer you keep saving, the more money youâll make over the long term. Maybe Social Security will be there for us (at least if IWPR where I work now, has anything to say about it) but Social Security was never meant to be a complete retirement packageâitâs supposed to be combined with employer pensions and personal savings.Itâs not always easy financially to take out that extra $20 or $50 a paycheck, but Iâm hoping down the line it will pay off for me with a secure (perhaps early?) retirement. I feel proud looking at my account to see what Iâve accomplished so far at my young age.
This also points out the need for reform, and for us 20-30 somethings to ask for change in the system. Yes we know we canât rely solely on SS for retirement, but we have paid into the system with our payroll taxes, so we deserve and are entitled to fair benefits based on our contributions.
– Michelle Schafer

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One thought on “Social Security for us 20 and 30 somethings”

What a good piece you wrote about Social Security and the need for private savings. Indeed, you have paid into Social Security and deserve to get your fair share back. The problem is that people in their 20-s and 30’s WON’T get back even what they put in. The system has to be fixed. How about a two-tiered system: a strong safety net–minimum benefit higher than the system pays now–and then let women like you invest a portion of your SS taxes in large mututal funds. At least you’d own something. Now, according to the Supreme Court, you’re actually entitled to nothing–no matter how much you put in.